DoorDash has agreed to a $375,000 settlement with the state of California, concluding a legal dispute over the alleged sale of customer data in 2020. The case, brought forth by California Attorney General Rob Bonta, accused the food delivery giant of breaching the California Consumer Privacy Act (CCPA) and the California Online Privacy Protection Act (CalOPPA) by trading the personal information of its users without proper notification or consent.
The investigation revealed DoorDash’s involvement in a marketing cooperative that facilitated the exchange of consumer data among participating businesses, aiming to broaden their marketing reach.
Why it matters: This resolution underscores the critical need for adherence to privacy regulations, particularly in jurisdictions like California that lead to establishing consumer privacy safeguards. The settlement not only highlights the potential pitfalls companies face when handling personal data, but also reinforces the rights of consumers to control how their information is used and shared.
- Enforcement of Privacy Laws: The case underscores the strict enforcement of the CCPA and CalOPPA, highlighting the legal obligations businesses have towards protecting consumer privacy and the potential consequences of non-compliance.
- Corporate Adjustments and Adherence: The resolution encourages companies to critically assess and adjust their promotional methodologies, ensuring compliance with regulatory standards and safeguarding consumer privacy rights.
- Precedent for Privacy Protection: The result of this investigation sets a significant precedent for future privacy law enforcement, indicating the seriousness with which violations are treated and the potential financial and reputational impacts on businesses.
DoorDash to pay fine for selling Californians’ customer data – Supermarket News
